Loading...
12/20 21:04
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call revealed strong retail transaction volume growth and revenue increase, despite challenges in the wholesale segment and ASP decline. The Q&A highlighted management's confidence in handling expansion and profitability pressures, with successful ramp-up of the Wuhan superstore and plans for further expansion. The positive sentiment is supported by strategic market presence and operational efficiencies, outweighing the short-term financial pressures and margin decline.
Retail transaction volume 10,385 units, up 154% year-over-year. This marks the fifth consecutive quarter with year-over-year growth above 140%, driven by strong and sustainable growth potential of the model.
Retail revenue RMB 610 million, up 87% year-over-year. The increase was driven by strong growth in transaction volume, despite a decline in average selling price (ASP) due to a shift toward a more affordable inventory mix.
Average Selling Price (ASP) for retail vehicles RMB 59,000, compared to RMB 79,000 in the same period last year. The decline was due to a shift toward a more affordable inventory mix, which aligns with mainstream consumer demand.
Wholesale transaction volume 1,221 units, representing a 19% decrease year-over-year. The decline was not elaborated upon in the transcript.
Wholesale revenue RMB 29.9 million, no year-over-year change mentioned.
Total revenue RMB 658 million, representing a 64% increase year-over-year. The growth was driven by strong retail transaction volume and revenue.
Gross margin 5.2%, down 1.2 percentage points from 6.4% a year ago. The decline was due to the price war in the new car segment and the early-stage ramp-up of the Wuhan superstore.
Adjusted EBITDA loss RMB 16.5 million, representing a 51% reduction year-over-year. The improvement was attributed to operational efficiencies and scaling efforts.
Retail transaction volume: Reached 10,385 units in Q2 2025, up 154% year-over-year, marking the fifth consecutive quarter with over 140% growth.
New superstore openings: Opened Wuhan superstore in February 2025 and Zhengzhou superstore in September 2025, expanding the one-stop used car experience.
Market expansion: Zhengzhou superstore opened in a major transportation hub with over 13 million residents and 5 million registered vehicles, strengthening presence in Henan province.
Industry trends: Chinese government policies have moderated price wars in the new car market, positively impacting the used car market.
Inventory turnover: Maintained healthy turnover at approximately 30 days, reflecting efficient operations.
Digital management system: Enhanced capabilities for pricing, reconditioning, and customer acquisition using real transaction data.
Talent development: Refined framework to quickly build employee competence and support rapid business growth.
AI integration: Actively exploring AI technologies to improve efficiency and scalability.
Profitability improvement: Wuhan superstore has entered a phase of margin improvement after six months of operation.
Gross Margin Pressure: Gross margin for the quarter declined to 5.2%, down from 6.4% a year ago and 7% in the prior quarter. This was primarily due to aggressive price competition in the new car segment, which exerted margin pressure on the used car market, and the early-stage ramp-up of the Wuhan superstore.
Operating Expenses Increase: Operating expenses increased due to the initial ramp-up of the Wuhan superstore, including investments in staffing and infrastructure, contributing to an adjusted EBITDA loss of RMB 16.5 million for the quarter.
ASP Decline: The average selling price (ASP) for retail vehicles declined to RMB 59,000 from RMB 62,000 in the prior quarter and RMB 79,000 in the same period last year. This was due to a shift toward a more affordable inventory mix, which could impact revenue per unit.
Wholesale Business Decline: Wholesale transaction volume decreased by 19% year-over-year, and wholesale revenue was RMB 29.9 million, indicating challenges in this segment.
Economic and Market Conditions: The used car market has been affected by aggressive price competition in the new car segment, although recent policy changes have moderated this competition. This creates uncertainty in market dynamics.
Retail transaction volume: Expected to remain on a strong growth trajectory with year-over-year growth of over 120% in Q3 2025. Full year 2025 retail transaction volume growth anticipated to reach approximately 130% year-over-year.
Profitability: Significant improvement in profitability expected in Q3 2025, with margin improvement already observed in the Wuhan Superstore after 6 months of operation.
Revenue: Total revenue for Q3 2025 expected to be between RMB 830 million and RMB 860 million.
Gross margin: Anticipated to rebound to approximately 7.5% in Q3 2025, recovering from the decline observed in Q2 2025.
Average Selling Price (ASP): Expected to remain relatively steady in the near term, aligned with mainstream consumer demand.
The selected topic was not discussed during the call.
The earnings call summary suggests strong growth in retail transaction volume and revenue, with improved profitability and gross margins. The Q&A section reinforced management's confidence in margin sustainability and expansion plans. While there are risks related to market conditions and strategic execution, the company's strategic partnerships and expansion plans are promising. The absence of unclear responses in the Q&A indicates transparency, and the optimistic guidance supports a positive sentiment. The overall sentiment leans positive, suggesting a likely stock price increase of 2% to 8% over the next two weeks.
The earnings call revealed strong retail transaction volume growth and revenue increase, despite challenges in the wholesale segment and ASP decline. The Q&A highlighted management's confidence in handling expansion and profitability pressures, with successful ramp-up of the Wuhan superstore and plans for further expansion. The positive sentiment is supported by strategic market presence and operational efficiencies, outweighing the short-term financial pressures and margin decline.
Uxin's earnings call indicates strong performance with a significant increase in retail transaction volume and revenue, positive adjusted EBITDA, and improved financial position. The guidance for 2025 suggests continued growth. Despite macroeconomic headwinds and competitive pressures, management remains optimistic about the used-car market. The financing agreement further strengthens their position. However, concerns about regulatory dependencies and supply chain challenges persist. Overall, the positive financial metrics and optimistic guidance outweigh the risks, suggesting a positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
